GameStop Sees Boost In Holiday Sales
The retail folks at GameStop have been struggling for certain parts of 2017, mainly due to the [...]
The retail folks at GameStop have been struggling for certain parts of 2017, mainly due to the rise of digital products in the gaming market. However, thanks to hardware like the Nintendo Switch and Xbox One X, it's actually had a pretty good holiday season.
According to GamesIndustry International, the company has reported its numbers for the nine-week holiday period ending December 30th, indicating that it has seen a 10.6 percent increase over the previous year, to the tune of $2.77 billion. This is some good news that the company has needed for a while.
"We are pleased with our sales performance during the important holiday period, driven by strength in the Nintendo Switch and Xbox One X, and a solid increase in our collectibles business," GameStop interim CEO Dan DeMatteo explained. "Our results demonstrate our customers' enthusiastic response to new products and our ability to execute on strategically targeted promotions."
Out of all the products offered, the Nintendo Switch and Xbox One X saw the most traction, pushing hardware sales to a 38.3 percent boost. Game sales by themselves also rose 7.3 percent over the previous year, mainly due to popular Switch games like Super Mario Odyssey and The Legend of Zelda: Breath of the Wild, along with Call of Duty: WWII.
That said, the company did note a bit of a downside when it came to the sale of used games. This particular department saw a drop-off by 8.1 percent over the previous years, "as customers shifted their spend to compelling new video game and collectibles products."
The company's technological division also saw a drop, dropping to 18.6 percent over the previous year, mainly due to the lack of availability of "hot products," like the iPhone X. AT&T's partnership compensation also played a part in the drop in earnings.
Where GameStop will go in 2018 has yet to be seen, but the chain looks to continue the trend of getting the best new products available, while offering goods for consumers that would normally buy goods digitally. As for its used games, we'll have to see what it introduces in the months ahead to get things moving again.